KUALA LUMPUR: The Health Ministry is considering the establishment of a National Health Fund for the funding of public healthcare services, the Dewan Rakyat was told today.

Health Minister Datuk Seri Dr Dzulkefly Ahmad said the fund aims to consolidate various planned funding sources, including taxes and non-tax revenues and earmarked funds from the ministry's enforcement activities like the tax on sugar-sweetened beverages, among others.

"This initiative aims to raise awareness among stakeholders about the significance of health financing, encouraging their participation in driving positive changes in healthcare financing," he said, in response to Suhaizan Kaiat (PH-Pulai).

Suhaizan inquired about the ministry's plan to create National Health Financing to provide the

best health services to the people and their challenges.

Dr Dzulkefly said the ministry is also aware that current economic constraints, as well as the administration and political situation of the country, will influence healthcare transformation.

"We also acknowledged that the burden of out-of-pocket (OOP) healthcare expenditure, which stands at 37 per cent, is among the highest compared to countries with similar economic standings to Malaysia.

"To address this, the Health Ministry aims to reduce out-of-pocket expenses by improving healthcare spending efficiency.

"As such, the ministry is currently studying and detailing the direction of the Healthcare Financing System reform, which will be announced in the near future.

"This direction will take into account the challenges and realities faced and will leverage global best healthcare practices and experiences," he said

Meanwhile, in reply to an additional question from Datuk Dr Alias Razak (PN-Kuala Nerus), who asked on the government's strategy to reduce the significant increase in medical cost inflation, Dr Dzulkefly urged the private healthcare facilities to consider the issue carefully.

"Indeed, the medical inflation in Malaysia is high and I acknowledge this reality. That is why, I urge private healthcare facilities, especially the Association of Private Hospitals Malaysia (APHM), to consider this issue carefully.

"As the health minister, I advocate for value-based healthcare and not pay-for-service, focusing on outcomes, to ensure efficient payment methods and healthcare outcomes, preventing healthcare inflation.

"Payment for procedures should not be unregulated under insurance and it could lead to moral hazards.

"I believe that after our engagement sessions with the APHM, they understand the value-based healthcare approach I advocate. Furthermore, through public-private partnerships, we are looking at their facilities (private healthcare facilities) to supplement what the public healthcare services cannot provide directly, within our means."

On the issue related to the co-payment requirements for medical and health insurance and takaful (MHIT) products, Dr Dzulkefly has urged the Bank Negara Malaysia (BNM) to provide clear guidelines on the matter.

"Regarding co-payment, this falls under the BNM's jurisdiction.

"I believe it's crucial for BNM to strategically communicate on this matter to prevent surprise effects, where we will see on social media many decided to opt out of insurance, subsequently overcrowding the public health facilities.

"Therefore, I urge the BNM to provide clear guidelines. We will support (the move), if it did not burden the people."

https://www.nst.com.my/news/nation/2024/07/1077599/health-ministry-considers-establishing-national-health-fund